On November 25, the Cabinet Committee on Economic Affairs (CCEA) approved the PAN 2.0 project with an investment of Rs 1,435 crore. This initiative is designed to overhaul the current PAN/TAN system to improve efficiency and ease for taxpayers.
Union Minister Ashwini Vaishnaw announced that the upgraded PAN will include a QR code and will be provided to all taxpayers free of charge.
Impact on NRIs Non-Resident Indians (NRIs) who need to file income tax returns or participate in financial transactions requiring a PAN must ensure they have the updated identity proof. NRIs can apply for PAN either by visiting the PAN application centers of UTIITSL or Protean (formerly NSDL eGov) or through an online application on their websites.
What is PAN 2.0? The government described PAN 2.0 as a technology-driven e-Governance project aimed at improving the process of taxpayer registration and transforming PAN and TAN services. The new system will also enhance the digital experience for taxpayers.
The initiative will streamline both core and non-core PAN and TAN activities, alongside validating PAN services. PAN 2.0 aims to make PAN a universal identifier across various government digital systems.
Benefits of PAN 2.0 The PAN 2.0 project promises several advantages, such as:
Faster service delivery with improved quality A single, reliable source of data Eco-friendly processes and cost savings Enhanced security and better infrastructure for greater flexibilityDo NRIs Need a New PAN Card?
Ashwini Vaishnaw confirmed that existing PAN cards will remain valid, and there is no need for citizens to apply for new ones. The upgrade is designed to improve functionality without affecting the validity of current cards. However, taxpayers will have the option to upgrade their PAN cards with the new QR code feature at no extra cost.
Documents NRIs Need to Apply for PAN
To apply for PAN, NRIs must submit a copy of their passport as proof of identity. For proof of address, they can provide:
A copy of their passport, or A bank account statement from their country of residence, or A copy of an NRE bank account statement showing at least two transactions in the past six months (attested by an Indian Embassy or Consulate). NRIs who do not have an Indian address may use their foreign address for both residential and office address details.Fees for PAN Application The fee for processing a PAN application is Rs 994, which includes application and dispatch charges. This fee applies if the communication address is located outside India.
Correcting Mistakes in PAN Cards If there are errors on a PAN card, applicants can apply for corrections using either offline or online methods. The form should be submitted with the relevant documents and prescribed fees.
Penalty for Multiple PAN Cards It is illegal to hold more than one PAN. Anyone caught with multiple PANs will face a penalty of Rs 10,000 under Section 272B of the Income-tax Act, 1961. If an individual has more than one PAN, they should immediately surrender the extra PAN card(s).
New Compliance Campaign Launched to Assist Taxpayers with Foreign Assets for AY 2024-25